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LSSP urges govt. to hand over power to interim administration

Published

4 years ago

2022/04/11

LSSP leader Prof Tissa Vitarana, in Parliament, on Friday, said that if the present government handed power over to a suitable interim government of good people, chosen from Parliament, and the administrative service, at the helm, and properly execute the above policies, and some others, it would be possible to find a solution to the present major crisis confronting the country.

Text of Prof Vitarana’s speech in Parliament:

“The people of Sri Lanka are suffering due to the high prices and the shortages of essential items which leads to queues lasting several days. The shortages of Imported items, like fuel, gas, milk powder and other food items, and medicines, is causing great suffering and a threat to life. For instance, the Sri Lanka Medical Association (SLMA) and Government hospital staff are publicly protesting about the suffering of patients due to this. The lack of electricity is another major problem. The Government has allowed traders to sell goods at any price without any controls. A system should be developed to ensure that the benefits of any concession given by the Government only goes to the ordinary people, especially the poor, and not to the rich. The consumers have to go hungry and more than 60% of the population, who are below the poverty line, have to manage with one meal a day.

“The Government has promised to supply some or all of these items in the near future, but no precise dates are being given. I call upon the government to inform the people when these essentials will be made available at a reasonable price. The government must stick to these dates and times, and not fool the people any longer with false promises.

“The government must address the causes of the people’s suffering and lead by setting an example. All ostentatious lifestyles of political administrative leaders of the country should be done away with so that the people will regain some confidence in the government’s promises. For instance, the tax system should be revised, as I always said. It is absurd, at a time of crisis, to have the upper limit of personal tax at 14% and the upper limit of company tax at 18%, to help the super-rich.

The tax system should be drastically revised as indicated in Table 1.

Table 1– Income tax System

Income bracket Percentages

< 100,000 No Tax

100,000-200,000 20

200,000-400,000 30

400,000-1,000,000 50

Over 1000,000 75

It was absurd for the government to increase VAT by 2% in the recent past, which was an indirect tax which affects every person, however poor he may be. There should be no increase in indirect taxes, like VAT. The large amount of money which, will be obtained from the super rich in this way, can then be used to give a parcel of dry rations to the hungry people on a weekly basis.

The above situation has arisen due to the lack of dollars with the government and with the private sector in the country. Our Foreign Exchange Reserve (FOREX) which normally average between USD 7 to 8 billion has now dropped to less than USD 1 billion (probably around USD 500 million). The government is deeply in debt to foreign creditors, and has to pay more than USD 6 billion this year. A part of this has been already paid and a payment of more than 3 billion dollars is due in May this year. This must not be done.

I recommend that the government should not go out of its way to repay these amounts on time, but ask for a moratorium on our debt for about five years. This means that for the next five years, Sri Lanka does not repay any of the debt which it has accumulated over several decades, which amounts to about USD 30 billion. During the next five years this money could be used to provide what the people are now lacking and suffering. Some development of the economy can also occur.

The Government must actively intervene to control prices. The Cooperative Movement, both producer and consumer, must be revived and function properly by direct purchase between the two. The major cause of the price increases is the huge profit made by the traders, which can be eliminated. This will ensure that both the producer and the consumer get a reasonable deal. All loss-making institutions, both government and private, should be run under the Solidarity principle. As an example, the privately run plantations which claim that they are running at a loss and therefore are not paying the promised Rs.1000/ daily wage, could be made into highly profitable institutions. The basic principle is that the ownership of the plantation is given to employees, who in addition to their regular salary get an equal share of the profits. This is no pipe dream. This has succeeded marvelously in many countries like Kerala, India, where the 66,000 hectares of tea–plantations are now running at a huge profit. Thus if the present Government hands power over to a suitable Interim Government, of good people, chosen from Parliament, and the Administrative service at the helm, and properly execute the above policies, and some others, it would be possible to find a solution to the present major crisis confronting our country and its people.

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New circular issued to support disaster-affected Micro, Small and Self-Employed Businesses

Published

8 hours ago

2026/01/28

Priyan

A new circular has been issued by the Ministry of Finance, Planning and Economic Development to provide relief to micro, small and self-employed businesses affected by the emergency situation caused by Cyclone Ditwah. The circular has been issued in line with Circular No. 08/2025, which was introduced to restore disrupted livelihoods following the disaster.

The Government programme to empower communities affected by the disaster was introduced through Budget Circular No. 08/2025 dated December 5, 2025. Expanding this relief framework further and ensuring more effective and efficient delivery of assistance, additional circulars No. 08/2025(i) dated December 20, 2025 and No. 08/2025(iii) dated January 22, 2026 have been issued.

The social empowerment programme under the newly issued circular is structured as follows.

Assistance for affected individual, small and micro businesses

A one-time grant to restore businesses damaged by the disaster to a condition suitable for reopening.

LKR 200,000 for individual, small and micro-businesses registered with the Ministry of Industry.

LKR 200,000 for individual, small and micro-businesses registered with the Divisional Secretariat as a business entity.

LKR 50,000 for unregistered home-based businesses operated from a permanent structure.

LKR 50,000 per unit for unregistered production industries, including greenhouses.

LKR 25,000 for temporary business setups, including mobile and street hawking.

A grant will be provided to owners of the commercial buildings affected by the disaster to restore their business premises to operational condition.

A grant of Rs. 500,000/- will be provided to each business building owner who voluntarily opts to receive assistance without a damage assessment.

A grant of up to Rs. 5,000,000/- will be provided to each business building owner who opts to receive assistance after a damage assessment, based on the assessed value of the building.

In addition to the above grants, the following loan facilities have also been provided.

In addition to these grants, the Treasury has introduced a new credit scheme to provide loans for business owners whose enterprises were affected by the disaster, enabling them to restart their operations and meet essential requirements.

Accordingly:

Facilities have been provided for affected businesses to obtain loans ranging from Rs. 250,000 to Rs. 25,000,000 through the banking system at an interest rate of 3%, with a 6-month grace period and repayment over 3 years to restart their operations.

As part of the investment loans for business reconstruction, entrepreneurs whose businesses were damaged can access bank loans of up to Rs. 25 million at an interest rate of 5%, with a 12-month grace period and repayment over 10 years.

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Food safety practices should not be confined to the school curriculum alone, but must become an integral part of the attitude and daily behavioral patterns of the child -PM

Published

8 hours ago

2026/01/28

Priyan

Prime Minister Dr. Harini Amarasuriya stated that food safety practices should not be confined merely to the school curriculum, but should be nurtured as an integral part of a child’s attitudes and behavioral patterns.

The Prime Minister made these remarks today (28) while addressing the National Workshop on Education for Building and Strengthening a Domestic Circular Economy, held at the Galle Face Hotel, Colombo, under the Circular Economy in the Food Sector Project (2024–2027).

Implemented with financial support from the European Union, under the Global Gateway programme in collaboration with the Food and Agriculture Organization of the United Nations (FAO), the workshop aimed to identify challenges and opportunities in integrating circular economy concepts into school education; to develop practical action plans through policymakers, youth and skills development sectors, and formal education stakeholders; and to establish a educational foundation to promote sustainable circular economy practices in the food sector of Sri Lanka by 2027.

The Prime Minister stated:

“Education is not merely about passing examinations and securing employment. True education fosters a sense of responsibility and connection towards society and the environment. At present, what is most important is the concept of the circular economy, which promotes the repeated and efficient use of resources.

This concept is not unfamiliar to our ancestors. I am reminded of my grandmother, who demonstrated remarkable skill in minimizing food waste. From what we discard today such as passion fruit peels, she prepared delicious jams and chutneys. Even the metal lids of milk bottles were not thrown away. Instead, she transformed them into creative household decorations. ’Nothing should be wasted’ was a core philosophy of their way of life.

However, today, women deal with intense time pressures. Balancing employment and childcare responsibilities, food waste such as vegetables or cooked meals left unused in refrigerators has become increasingly common due to time restrictions. This should not be seen as the sole responsibility of women; rather, household responsibilities and labour must be shared collectively within the family”.

The Prime Minister further emphasized that practices such as taking only the required portion of food, cleaning one’s own plate, and developing respect for conserving resources should not remain theoretical lessons, but should be embraced as everyday life practices. She also reaffirmed that the Ministry of Education would extend its full support towards achieving this goal.

The event was attended by Carmen Moreno, Ambassador of the European Union to Sri Lanka and the Maldives; Dr. Johann Hesse, Head of Cooperation of the European Union; FAO Representative Vimlendra Sharan; along with representatives from the National Institute of Education (NIE), and a number of government and non-governmental organizations.

[Prime Minister’s Media Division]

News

Cabinet nod for MOU between Sri Lanka and Romania on the cooperation in the Labour Field

Published

17 hours ago

2026/01/28

Priyan

Romania, a country that has maintained diplomatic relationship with Sri Lanka for several decades in various fields, has become an increasingly popular destination among Sri Lankan skilled and semi-skilled Labour categories, especially in the fields of construction, manufacturing, hospitality, and services sectors.

At present, the recruitment of Sri Lankan workers to Romania is carried out by licensed private employment agencies under the
supervision of the Sri Lanka Foreign Employment Bureau. However, since both parties have recognized the need of establishing a more organized and sustainable recruitment method due to increasing demand, the Cabinet of Ministers has approved the proposal presented by the Minister of Foreign Affairs, Foreign Employment, and Tourism to enter into a Memorandum of Understanding between the Government of the Democratic Socialist Republic of Sri Lanka and the Government of Romania regarding cooperation in the field of the labour sector with the following objectives.

• Establishment of proper mechanism for recruitment and management of workers.
• Promotion of ethical and transparent recruitment practices.
• Protection of rights and welfare of the migrant workers.
• Facilitation of regular discussions between the formal and relevant authorities ofboth countries.
• Improvement of technical cooperation, skills recognition, and capacity building in the labour sector.